Newsom opposes taxi fare increase in S.F.

S.F. Mayor Gavin Newsom published the following letter to the Board of Supervisors today, outlining his rationale of why a taxi fare hike would be a bad idea:

October 11, 2006

Board of Supervisors Budget and Finance Committee

One Carlton B. Goodlett Place

San Francisco, CA 94133

Members of the Budget Committee,

I write to express my concerns about a proposed taxi fare increase currently before the Board of Supervisors. I believe that increasing taxi fares will discourage local residents from using taxis,

which represent an important part of our City’s Transit First policy. Additionally, fare hikes increasingly make taxis accessible only to the wealthy in our city.

Legislation pending before the Board proposes a substantial increase in the initial “flag-drop” charge for each taxi ride. San Francisco’s average taxi fare is already among the highest in the US, topped

only by Honolulu, San Diego, and Miami. In fact, only Las Vegas has a higher initial flag drop charge. The proposed 50-cent increase in San Francisco’s flag drop charge, up to $3.35 per ride, would make it the most expensive flag drop in the country.

As Board President Peskin pointed out, consumers have not been at the table in discussions about increased fares. Tens of thousands of local residents rely on taxis for their daily transportation to

and from work, to visit family and friends, and to shop and eat in local businesses. Taxi fare hikes impact the day-to-day cost of living for these residents, who already face among the highest cost of

living in the US.

From an environmental perspective, residents must be encouraged to use transportation other than their own cars. Indeed, doing our part to limit pollution and fight global warming requires expanding affordable, reliable alternatives to private car use. Increasing the cost of such alternative transportation discourages — rather than encourages — use of such transportation. It is likely that many residents will abandon taxis as their daily transportation as fares increase, which will hurt the environment and also impact the revenue for taxi drivers.

The proposed flag drop increase is intended to offset the increased price of gasoline. However, relief for drivers facing higher gas prices should not be made at the expense of riders, but rather by

moving aggressively to increase the portion of alternative fuel and hybrid taxis in San Francisco. Since drivers pay the cost of gasoline, operating alternative-fuel cars will save drivers money and

insulate them against gas price spikes.

Fifteen percent of San Francisco’s taxi fleet is already made up of alternative fuel or hybrid vehicles that are less vulnerable to higher gas prices. While this is among the highest percentage of

alternative fuel vehicle of any city’s taxi fleet, we can do much better. I am hopeful that the Board will partner with my office to require all new taxis — where practicable — to be alternative fuel

vehicles.

I applaud the Board’s commitment to increasing health care for drivers and look forward to collaborating on ways to achieve this important goal in the coming months.